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$NASDAQ:MSFT Everyone is doing the SIP the Wrong way...NASDAQ:MSFT Everyone is doing the SIP the Wrong way... Follow the "SIP Smartly" Indicator to do it Right. We should do the SIP when others are fearful. Do your research to pick the quality stock and add "SIP Smartly" Indicator and keep SIPping when you get a Buy alert for your stocks and sit back and enjoy. And let magic of compounding generate wealth for you. Do your own research before investing or trading in any stock or indices. Disclaimer: This is not a financial, investment or trade advice. Its only for educational purpose.
NASDAQ:MSFT
by jac001
Investment_ NetflixNamaste! Netflix has corrected almost 74% from the all time (swing) highs. This isn't new for Netflix. It had happen in the year 2011-12, when it corrected 82% from swing highs. It had moved >9000% since then (up to the latest swing high from Rs 7-8 price). Investing after a correction is a good idea, because it gives us more room for potential gains. And, there is no SL. In the worst case scenario, (if the company goes bankrupt), we don't sell. It's just the cost of execution (we lose 10% of our capital). 1. Do not invest more than 10% of your whole capital in this stock. 2. It is a good price to buy (invest) now. The current price is Rs 183 approx. Thank you for your time. Disclaimer: The analysis and idea I have shared is of my own. Please do your own due diligence before investing. The reward always comes with a risk.
NASDAQ:NFLXLong
by UnknownUnicorn7637383
Investment_ Disney_ Walt Disney CompanyNamaste! Walt Disney is the biggest media company by market cap in the world. It has multiplied around 70 times (to date) since the IPO. Talking around the current scenario, it had acquired Marvel for 4 billion dollars a decade ago which made 18 billion dollars to Disney. The point here is that it is taking good management decisions to adapt to changing business environments and killing the competition by acquiring them. And OTT platforms will be the future. TVs are a day of the past. They (OTT) platforms will charge a fees for almost every movie if not all in the coming decade. It will make them a lot of profit. So, it is a good investment opportunity for Disney at current prices. The main reasons are following. 1. It has corrected >50% from all time highs. Buying after a correction is always a good idea, which has so much potential to maximize your returns in the long run. 2. If you look at the charts, you may notice that it is kind of creating a higher swing low, which is a good bullish indication. Value for money stocks tend to not easily fall in bear market or weak economy cycles. 3. OTT platforms are the future, where I think every movie will be charged money to be watched, making these OTT platforms a lot of money. This is my thinking please comment your idea. 3. Disney has been releasing the content, which is almost watchable with our families. Which is quite good because they are almost having audience of all the age groups. It's content is enjoyable from the age group of 10-60 years, in my opinion. Investment at current prices is a good opportunity since the stock very rarely corrects below 55-60%. Disclaimer: The analysis I have shared is based on my understanding and experience in the markets. Investment does not guarantee a fixed return due to volatile nature of markets and may result in a loss. Please do your analysis and/or consult your financial advisor before investing.
NYSE:DISLong
by UnknownUnicorn7637383
2
BUY TODAY SELL TOMORROW for 5%DON’T HAVE TIME TO MANAGE YOUR TRADES? - Take BTST trades at 3:25 pm every day - Try to exit by taking 4-7% profit of each trade - SL can also be maintained as closing below the low of the breakout candle Now, why do I prefer BTST over swing trades? The primary reason is that I have observed that 90% of the stocks give most of the movement in just 1-2 days and the rest of the time they either consolidate or fall Trendline Breakout in RCL BUY TODAY SELL TOMORROW for 5%
NYSE:RCLShort
by Kapil-Mittal
BUY TODAY SELL TOMORROW for 5%DON’T HAVE TIME TO MANAGE YOUR TRADES? - Take BTST trades at 3:25 pm every day - Try to exit by taking 4-7% profit of each trade - SL can also be maintained as closing below the low of the breakout candle Now, why do I prefer BTST over swing trades? The primary reason is that I have observed that 90% of the stocks give most of the movement in just 1-2 days and the rest of the time they either consolidate or fall Trendline Breakout in MRVL BUY TODAY SELL TOMORROW for 5%
NASDAQ:MRVLLong
by Kapil-Mittal
Concept of Pair Trading What is a Pair Trading ? - Pair Trading is a market-neutral trading strategy that involves the simultaneous buying and selling of two correlated or related financial instruments. - Traders identify two assets that historically move in tandem and take positions based on the expectation that the spread between the assets will converge or diverge. - The strategy aims to profit from the relative performance between the two assets, regardless of the overall market direction. How Pair Trading is done ? - Lets take two hypothetical stocks, Company A and Company B. - Let's say in the past Company A and Company B have shown a strong correlation in their price movements. - However due to some market conditions there is an imbalance in their prices. - If earlier the ratio of the prices of Company A to Company B is around 1:1, but due to some market conditions it shifts to 2:1. - A trader may recognise the abnormal ratio of 2:1 compared to the usual 1:1. - Trader may Sell short Company A while simultaneously buying Company B. - and wait for the prices of the two stocks to converge back to their usual ratio of 1:1. - When prices revert to their typical ratio of 1:1, the trader can close their positions by buying back Company A and by selling Company B. - The goal is to profit from the convergence or divergence of the two assets rather than relying on the overall market direction. //------------------------------------------------------------------------------------------------------------------ Pair trading can be done in various types of securities:- 1. Stocks : Pairs of individual stocks within the same sector or industry that typically exhibit a high correlation. 2. ETFs : ETF pairs that track similar indices, sectors, or commodities. 3. Options : Pair trading using options on related securities, employing strategies such as a put-call parity or a ratio spread. 4. Futures : Futures contracts on correlated assets like commodities, indices, or currencies. 5. Bonds : Pairs of bonds with similar maturities or credit ratings. Note:- Stocks suitable for pair trading typically exhibit a strong historical correlation, often found within the same sector or industry. For eg. Coca-Cola and Pepsi, Apple and Microsoft, General Motors and Ford. //------------------------------------------------------------------------------------------------------------------ Pair Trading requires a deep understanding of statistical analysis, risk management, and market dynamics to identify suitable pairs and execute trades effectively. It's crucial to continuously adjust the position/strategies as per changing market conditions to succeed in pair trading. Lets understand the step by step process of how Pair Trading is done:- 1. Pair Selection: Identify two correlated securities by thorough research and statistical analysis to find assets that historically move in tandem. 2. Statistical Analysis: Perform statistical analysis to establish the relationship between these pair of assets. Determine the mean, standard deviation and historical correlation to understand their typical behavior. 3. Deviation Identification: Wait for a deviation from the established relationship due to some market conditions or other factors, which may lead to an imbalance in their price. 4. Entry Signal: Utilise technical indicators (RSI etc) or statistical data to identify entry points when the deviation is significant enough to suggest a pair trading entry. 5. Position Sizing and Execution: Take positions by buying the undervalued asset and selling short the overvalued asset. Determine the appropriate size of each position based on factors like volatility, historical relationship, and risk tolerance. 6. Monitoring and Reversion: Monitor the positions closely, expecting the prices of the paired assets to revert or converge back to their historical relationship. Plan exit points for potential profits or to limit losses. 7. Risk Management: Implement risk management strategies by setting stop-loss orders, diversifying positions, and adapting the position size based on market conditions. 8. Exit Strategy: Exit the trade by booking profit when the prices revert to their typical relationship, achieving the expected convergence. If the trade moves against expectations, consider reassessing the positions and exiting to limit losses. //------------------------------------------------------------------------------------------------------------------ Advantages and Disadvantages of Pair Trading:- Advantages of Pair Trading:- 1. Market-Neutral Strategy: It aims to profit from the relative performance between two assets, irrespective of the overall market direction. 2. Diversification: It provides a way to diversify risk by trading two correlated assets simultaneously (hedge). 3. Reduced Market Risk: Since it's based on relative performance, pair trading can reduce market risks that affect both assets in the same way. 4. Opportunity in Market Inefficiencies: It capitalises on temporary mispricings or deviations from the historical relationship between assets. Disadvantages of Pair Trading:- 1. Correlation Risk: Unexpected changes in the historical correlation between the paired assets can result in losses. 2. Entry Challenges: Timing the entries and exits for both positions simultaneously can be challenging. 3. Unforeseen Events: Sudden events impacting one asset more than the other can disrupt the expected convergence or divergence. 4. Leverage and Margin Risks: Leveraging positions can magnify losses if the trade moves against expectations. 5. Commissions and Costs: The need for frequent trading due to short-term price movements can lead to higher transaction costs. Note: Pair trading requires a strong understanding of statistical analysis, risk management, and a consistent approach to identify and capitalise on mispricing between the selected assets. Traders need to remain vigilant and adaptable to changing market conditions to effectively employ this strategy. //------------------------------------------------------------------------------------------------------------------ An example of achieving market neutrality:- Stock A and Stock B are generally at 100 each (as per historical data), (ratio 1:1). But now due to some market conditions Stock A is 100 per share & Stock B is 200 per share (ratio 1:2). Pairs trade: Buy 200 shares of Stock A for 20,000 & Sell 100 shares of Stock B for 20,000 (Net Buy/Sell = 0). This is a true market-neutral position. case 1 is if both stocks rise 50 percent: Stock A will be 150 per share & Stock B will be 300 per share (Net Profit/Loss = 0). case 2 is if both stocks fall 50 percent: Stock A will be 50 per share & Stock B will be 100 per share (Net Profit/Loss = 0). case 3 is if stocks A fall 50 percent & Stock B rise 50 percent: Stock A will be 50 per share & Stock B will be 300 per share (Trading Pair in Loss - need Adjustment or Exit to minimise Losses). case 4 (as per our expectation) is if stocks A rise 50 percent & Stock B fall 50 percent: Stock A will be 150 per share & Stock B will be 100 per share (Trading Pair in Profit - Book Profit). So out of 4 Case/Conditions only one case (Case 3) need adjustment. //------------------------------------------------------------------------------------------------------------------ ABOVE SHARED EXPLANATION OF PAIR TRADING IS FOR EDUCATIONAL PURPOSE ONLY. YOU MAY BUILD YOUR OWN STRATEGY & PAPER TRADE TO GAIN CONFIDENCE AND BUILD FURTHER ON THESE. Hope this helps :-) Tc Happy Trading.
NYSE:KOEducation
by MasterTrader1949X
1